Union Budget 2026-27: Penalty Proposed for Non-Reporting and Misreporting of Crypto Transactions:

Union Budget 2026-27: Penalty Proposed for Non-Reporting and Misreporting of Crypto Transactions With the release of the Union Budget 2026-27 on February 01, the government has proposed a key amendment concerning the non-furnishing of a statement or furnishing inaccurate information in a statement on the transaction of crypto-assets. As per the provisions of said section, the prescribed entities must submit a statement giving accurate details of transactions involving crypto-assets, in the manner and within the time prescribed by the law.

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Section 509 of the Income Tax Act relates to the requirement of disclosing information related to the transaction of crypto-assets. To make sure taxpayers are complying with the provisions of the said section, the government has proposed introducing a penalty provision in case of non-furnishing of such a statement or for sharing inaccurate information in such a statement. This proposed penalty amounts to Rs. 200 per day for not filing a statement and Rs. 50,000 for filing incorrect information and failure to correct such inaccuracy.

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In conclusion, the government is planning to make required changes in section 446 of the Act to include penalty provisions for not filing a statement and disclosing incorrect details related to the statement. The said amendment is set to take effect from April 01, 2026.